JAKARTA - PT Pemeringkat Efek Indonesia (Pefindo) affirmed the AA- rating for PT Elnusa Tbk (ELSA) and the company's first stage I of 2020 sustainable Sukuk Ijarah (Musyarakah agreement) with a stable outlook.
In a written statement from Pefindo, which was quoted on Friday, April 16, it was stated that the rating reflects a strong business synergy with PT Pertamina (Persero) as the parent company. The rating also shows the company's strong position, income diversification in the supporting services and oil and gas business, as well as reflecting the company's solid financial condition.
However, the rating, according to Pefindo, is constrained by volatility in the oil and gas sector and the company's exposure to investment risk. The rating, according to Pefindo, could be raised if Elnusa was able to significantly strengthen its business position.
This can be demonstrated by significant growth in revenue and profit while maintaining a conservative capital structure ratio and strong cash flow protection on a sustainable basis.
Also, the rating could be lowered if Elnusa's aggression finances its business expansion with debt that is larger than projected, thereby weakening the size of its capital structure and cash flow protection measures.
For information, Elnusa is owned by the country's oil and gas giant, Pertamina, with 41.104 percent ownership of shares. Elnusa is engaged in upstream oil and gas services and invests in shares in subsidiaries.
In 2021, Elnusa has budgeted for this year's capital expenditure (CAPEX) of IDR 600 billion. Elnusa will invest in equipment that supports the work of the hydraulic workover unit, coiled tubing unit, and the addition of a fleet of tankers and terminal infrastructure for fuel oil and liquefied natural gas (liquefied petroleum gas/LPG).
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